VEB will seek assistance from the Central Bank

Vnesheconombank’s Supervisory Board, appointed on 29 March to discuss the recapitalization of the Bank. The Board of the state Corporation headed by Sergey Gorikova proposes to consider the conversion of short-term loan of the Central Bank’s long subordinated loan, to account for it in the capital of the Bank. That this issue will be a major on the Supervisory Board, said the source close to VEB, and was confirmed by a source in the government.

We are talking about several loans totaling about 500 billion rubles., each of which was issued for six months at 6% per annum. A significant portion of this amount was received by the Bank in the crisis of 2008 on the rehabilitation of GLOBEXBANK and Sviaz-Bank. The balance owed on the loan recovery of these banks is 212,6 billion rubles subordinated loan the management Board of Vnesheconombank proposes to register for ten years at 1% per annum and to include it in the capital of the Corporation.

“While this is only a proposal, which will approve or reject the Supervisory Board. The Central Bank will discuss it only after it officially receives from the leadership of the state Corporation”, — says the source in the government. According to him, the proposal if approved Gorkov sent to the office Elvira Nabiullina in the beginning of April. That the decision on the conversion of manual VEB wants to be taken immediately, was confirmed by a source in the state Corporation. The Central Bank declined to comment.

According to the source the source, conversion will help the Corporation to defer clearing the balance non-core assets, namely, transmission “GLOBEKS” and Communication-Bank the Agency on insurance of contributions (ASV) until July of this year. The idea to sell the subsidiary banks to the Agency the management Board of Vnesheconombank discussed back in January of this year, with the former Chairman of state Corporation Vladimir Dmitriev. The whole point was that DIA will buy the “daughter” of VEB for money, but the Corporation in this way will repay part of its debt to the Central Bank. However, the question of where the Deposit insurance Agency will attract money, while seriously was not discussed, said earlier a source close to the Agency.

According to the newspaper “Kommersant”, the original amount of assistance requested by the Corporation, to 1.5 trillion rubles, Finance Minister Anton Siluanov in December 2015 was assessed salvation VEB 1,34 trln rbl. is Not excluded that the Bank can expect to receive in 2016 300 billion rubles from the national welfare Fund (NWF). This was announced in mid-March from the Ministry of Finance published the draft of new rules for allocation of the Fund on the deposits of the Bank.

In VEB’s Supervisory Board consists of the Chairman of the government Dmitry Medvedev, first Deputy Prime Minister Igor Shuvalov, Deputy Prime Ministers Arkady Dvorkovich, Dmitry Kozak, Alexander Khloponin, presidential aide Andrei Belousov, Finance Minister Anton Siluanov, economic development Minister Alexei Ulyukayev, the Chairman of Vnesheconombank Sergey Gorkov.